Chip Peddler

Happy New Year

2011-12-28T19:15:00.000-08:00

Where do I start when it comes to things that I am thankful for.

1) My wife and family (even those who live afar) who have supported me in the pursuit of this idea.
2) The people of Durango - where I have been able to borrow the trucks from Durango Party Rental, the fork lifts of both Zuberfizz and Desert Sun and get advice from some of the leaders in the food industry from both a local and world perspectives.
3) Small Business Development Center on the campus of Fort Lewis College
4) Durango's retailers who have given me precious shelf space and the time of day.
5) Citizen's of Durango, need I say more.
6) Investor Support
7) Mitch helping out.
8) A certain potato grower living south of me.

Things have come a long way since last year at this time. The Lime & Sea Salt Tortilla bag had just been delivered and I was starting to create a following through a limited number of local outlets. Now the product can be found in most of Durango's major retailers including both City Markets, Albertson's, Rite Aid, DNF, PJ's Market, Exxon Stations and Nature's Oasis - which is doing the best in sales by far. Keeping this going outside of Durango has been more of a challenge but for the most part things are working out. Scott Mercer has been able to reach markets in the Colorado central mountain region from Pagosa to Frisco and a lot of stops in between. Mitch has a meeting set up with the food buyer from Vitamin Cottage in Denver, lets see how that goes.

Jon Bailey has started to work on the Jalapeno & Cheddar Tortilla chip bag design - see rough sketch that I gave him to work from below. For those who love the Green Chili & Cheddar Tortilla chip the new one will have all the cheese & more heat than what is currently available. You will also see big bags of the Green Chili & Cheddar potato chips in limited stores soon.

There is a "Food System Summit" 4 Corners Region coming up on the 18th of January in Aztec, NM for those who are interested in the topic of local food production. The event has quite a list of sponsors and participants, maybe upwards of 400. Click for more info. www.4cfullspec.com.

I have also signed up to go to the salted snacks trade show (SNAXPO) this year being held in Phoenix this year in March the 16th - 18th.

I have been trying to get over to the San Luis Valley to pick up what will be the last of the Purple and Red potatoes for the season. The trip has been delayed twice due to snow storms, which made it more convenient to wait until I had the sample done for the Colorado Potato Growers Association. As I waited for the label to arrive, which was getting later by the day, it became apparent to me to contact the sticker company to see when the package might arrive. They seem to have lost it after printing it and they will be printing it again. Of course this took place through the holiday which put back the printing 3 more days. They did arrive at the Growers Assoc. on Thursday and made it just in time to be packed for the trade show. What fun.

You will see a new bike trailer at events this year. I am going to introduce the idea of a more dynamic way to attending events then the 10' x 10' booth. The delivery bike is almost done as well, still missing the fenders and some last adjustments that will be done once I pick up a new seatpost.

In other biking news
Phil's world has picked up a little snow, but if you ride it before it gets to warm it is just fine.

Trails 2000 held a Christmas Lights ride on the 23rd of Dec. which has started to attract a small following of participants - each year gaining more riders with a chili and chips party to end the night.

The finale of the local cyclecross series was held at Fort Lewis College a couple of weeks back with lots of muddy action.

And last but not least, I got to go dirt biking on a borrowed YZ for thanksgiving and christmas, I am so thankful for friends.

Food Security

2011-11-23T07:28:00.001-08:00

Recently I attended the Southwest Food & Farmland Forum in Lewis, CO (just outside Cortez) where the topic of securing our Food, Farmland and the future of both was discussed. The people who attended were small time farmers and ranchers from the Western Slope for the most part who take part in the regions farmers markets and are looking to connect with new markets. As a "Value Added Manufacture" I sometimes feel like the odd one in the room, but I pointed out that "Branding" has a lot to do with connecting to your customer. Palisade has the peach, James Ranch a broad collection of quality goods each speaking differently yet conveying the strength in the brand each time you interact with it.

For me 3 key points came to me after the meeting.

   1 - Find the suppliers and the consumers. Montezuma, CO has Agriculture and San Miguel, CO does not, yet San Miguel has a lot of people who would prefer to eat local made food.
   2 - Work on distribution, this would include refrigeration and dedicated schedules and routes.
   3 - Work on a strong brand, Individually for sure & maybe collectively (Independent Food Producer) something that stands apart from the global producers.

There has been significant interest and growth in the business since last year which has lead to reaching markets in Palisade, Mancos, Alamosa & Buena Vista on a consistent basis and also having product showcased in places like Silverthore where Scott Mercer attended an event last weekend for people that cater to the hotel industry in the area. Also, nothing feels better than the display looking half full after one day of shopping.

It also looks like we will be making samples for the Colorado Certified Potato Growers Association for all of there upcoming tradeshows. We will be putting together a mix of salted Mountain Rose and Purple Majesty chips for 3 different events amounting to about a 1,000 pieces. More important will be the connections to the people who are part of the association. I did find out that "Chip Peddler" chips are the only chips made from potatoes grown in the San Luis Valley, most of there potatoes are grown as seed potatoes and shipped to other regions of the country to be grown by other farmers before going to the chipping house.

In other news, the "Chip Peddler" delivery bike has been painted the company color, thanks to the people at Mesa Color in Durango, who took care of sandblasting the frame and powder coating, for being one of the sponsors on the project.

In other news.

The Halloween ride at Phil's World ended with a "Time Trail" race. Everyone had to ride the same bike in costume, here Meredith Mapel takes off from the starting gate - her husband, Jimmy Kight took home the fastest time even after laying it down in one of the turns.

At the Motocross track in Aztec, NM there are now some new "Freestyle Bicycle Jumps" that have been set up, at the moment there are a few jumps to hit but if all goes well they will have different sets of them that will lead down the wash.

Shadow

2011-10-19T20:27:00.000-07:00

For the last 2 months I have had Mitch Fedak hanging around me like a shadow. He has been helping out in every capacity, from picking up potatoes and making chips out of them to streamlining production and doing deliveries. At this point my shadow has been two steps ahead of me at times, which is exactly what I need as the company's distribution is expanding into new markets monthly. This has also led to expending more money for each new account therefore tying up more working capital with each new market expansion - oh what fun.

I was approached this summer at one of the E8 events by Scott Mercer who has a business where he distributes fine liquors in our area. He is located in Salida and has been looking for various products made in our area to distribute on the return route to help offset the costs related to coming this way. He has already talked to Dan & Banden from Zuberfizz and will be bringing their soda to the area from Alamosa to Leadville. He is now delivering chips and was able to talk to some of our other food manufactures in our area.

In other news around Durango the Stillwater Foundation held a fundraiser at the Hank Theatre which is inside the Henry Strater Hotel. I am elated with the great programs that we (Durango) continue to offer to the public. The event was also the CD release party for Hello Dollface, a group that has all the potential to go places but we hope they will always make Durango home. I was also introduced to Robby Overfield who let the house know that he has arrived and ready to please.

Last Wednesday, October 5th, Mitch and I took a trip to Center, CO and picked up the first load of Mountain Rose and Purple Majesty potatoes that we will soon be making chips out of. We picked up the Mountain Rose potatoes from Worley Seed and the Purple's we got from the CSU Extension Center just outside of Center, CO.

Giving Up

2011-09-25T14:23:00.000-07:00

Giving up, NOT ME! - in fact things are really starting to get rolling after 18 months of being in business.

I do get frustrated with a lack of understanding of what we are going to need to get our economy rolling again. Infrastructure will help, but we need is to start making things in this country again in order to have a basic economic stability.

We have recently received the Salted Tortilla package and they look great next to the Lime & Salt Tortilla package. Shown here in a shipping box.

The shipping area fills up full each week now before emptying out to almost nothing Friday afternoons.

I was glad to see that Durango was ranked #1 in Micropolitan areas across the country by POLICOM a company that releases "economic strength rankings" every year. This makes me think that there are a lot of people in our community who have also "not given up yet".

After talking to City Market/King Soopers around 9 months ago I am proud to say that you can now purchase "Chip Peddler" chips in both City Markets in Durango. Regionally you can now also find our chips in Mancos at Zuma Natural Foods, in Pagosa Springs at Joy's Natural Foods, in Ridgway Natural Foods, Gunnison Vitamin & Natural Foods and also at the Family Food Town store in Palisade. We are hoping to start to develop distribution from Alamosa to Leadville next where we are starting to get interest from communities like Buena Vista.

We Recently had the Tour de Farms event last August 27th starting at SKA Brewing and heading south on La Posta Rd. visiting local farms, Rainbow Springs fish farm and Sunnyside Farms Meat Packing Plant.

2 Laps in the Sage

2011-08-21T19:21:00.000-07:00

Have you ever tried a new sport or task just to find yourself on the side of the slope and getting up after a hard fall wondering if this new endeavor you have taken on is for you.

When I was asked to become part of the 24 Hours in the Sage race, which is held in Gunnison, Colorado, I was excited because talking to an audience that I will be able to deliver chips to market on a regular basis is key in spending the time at any event. A lot of the people signing up for the event were from the Western Slope which has been a focus of the company for the last few months.

During the event I had mentioned to a friend how everytime I try to reach a new market I have the feeling of just starting from scratch in each new market, that being said I did spend the time to talk with a regional distributor of locally made goods, drop off samples and discuss possible outlets in the areas they service, including Gunnison.

For those who have never experienced an overnight bicycle event as a rider or a spectator I would recommend it if chainlube runs in your blood. As one of the event sponsors the whole company was able to attend the event promoting Chip Peddler chips whenever we could.

Product was included in every racer pack along with a lot of other goodies, Colton and Emery raced in the 24 minutes in the Sage sporting their company attire and Doom gave us tons of time on the microphone during the entire event.

I was able to take two complementary laps during the event doing then each time on the '52 Schwinn Panther townie bike - racking all kinds of kudos during each lap.

During the first evening I met up with an investment banker who would like to get samples to his investment team, which I will be working on getting to him as soon as the new Salted Tortilla package arrives.

After getting home the natural food store called wanting to carry the chips and also have them as part of their upcoming fall celebration.

Potato Crickets, Hollow Hearts & Black Eyes

2011-08-01T17:00:00.000-07:00

There are no crickets, just some bits of potato that after they have been fried up kinda look like crickets and so that is how I refer to them.

The new batch of potatoes from Bakersfield have more moisture in them then the last batch from Farmington and the texture is a little different. The chip seems harder, or crisper than the last batch and the also have more slurry pieces that get cooked and they show up at the bottom of the bag or hitching a ride on the side of a chip.

Every potato chip that is currently made at Durango Snack Werks under the Chip Peddler brand name has been carefully selected and individually ushered through the cooker, hand seasoned & bagged with the idea that we will celebrate the differences that each potato brings to the party. That being said you might find a chip with a hollow heart or one that has some dark spots or even a black eye on the edge of the chip. Feel lucky when you find one and give it a good home.

Upcoming & Past Events:

I have been able to get in some High Country bike ride this year including the Blackhawk section of the Colorado Trail, what a great place to be while the flowers are in bloom. Check out more on the Two Wheel Tribe site.

Chip Peddler was a food sponsor at the Hermosa Offroad Classic Bicycle race held on July 3oth up Hermosa Creek Trail. We will also be giving chips to Sutherland Farms for their upcoming Farm Fiesta being held August 6th from 1pm - 9pm.

Chips will also be part of the goodie bags in this years 24 Hours in the Sage race held in Gunnison Co.

Evenings on 8th

2011-07-22T05:10:00.000-07:00

As the summer is passing quick and Durango is in full swing with the tourist season the Evenings on 8th (E8) events have started to happen for the 2nd season. This event includes local startup businesses, existing businesses, food and beverage vendors, artists and musical talent. In the 1st year the event has helped launch a new restaurant and expose these vendors and artists to a vibrant local marketplace with their talents and goods. The event was started by Carol Clark who was also responsible for starting such projects like the Durango Farmers Market, Oktoberfest & the Green Living Expo all of which are now becoming signatures of quality on the Durango calendar of events.

It has come to my attention that the paperwork was not filled out correctly for the E8 events during the month of August and I would like to solicit your opinion on this event and let the city manager, the chief of police or any of your city councilors what you think of this event, positive, negative or ways you might like to see it changed.

At the event I have been able to make connections with new sales outlets, connect with customers and get direct feedback on my product, teach the kids how to run an event booth and make sales, lessons that will last a lifetime.

Other news: The sales trips to Grand Junction and Pagosa Springs have led to product placement in both place on a test market basis. Also sales in Ridgway have increased with the introduction of additional styles and flavors. Chip Peddler chips will also be served at the Hermosa Classic bicycle race on July 30th during the after race party. We will also be a sponsor of the 24 hrs. in the Sage in Gunnison on the 20th-21st of August.

The high country is wide open for biking and I have been able to do Kennebec Pass and some other rides on the Colorado Trail where the flowers are in bloom.

Summer Events

2011-06-30T18:28:00.000-07:00

The start of the summer event season was kicked off with The Concert Hall at Fort Lewis College holding a Friday at the Fort event downtown under a fine afternoon in downtown Durango. I will be attending the Evenings on 8th (E8) events held every Wednesday night starting from the 6th of July till sometime in early fall.

I will be soliciting sponsors to help construct a "Chip Peddler Event Trailer" out of recycled and perfectly good discarded materials. Sponsors will find there logo emblazoned on the trailer for the world to see forever. They will also be able to showcase their knowledge to the public at the E8 events when it becomes time for the application of there skills on the trailer.

On Wednesday this week I took a trip to the Grand Valley to meet with some retailers as well as Antonio, the owner of La Milpa, and see his shop and also talk about ways to make the chips unique by adding ingredients to the masa during the making of the tortilla. Also discussed was how I might be able to get product delivered in his area without becoming a hassle for his staff. Under my full disclosure policy I have taken a picture of the ingredient list from the masa supplier so you can see what is in my corn chips.

During lunch I spotted a a construction site and asked the owner of the cafe if he knew what they were building and it was the new site for La Milpa's new tortilla factory. There might be a time when it makes more sense to have my product made at his place under my guidance.

On the way home I made sure to check out some of the great vehicles along the route.

Also this week a couple of old friends from my hometown came by and stopped for the night and my mother (Irene) is visiting through the 4th of July.

Harvest Grill & Greens at James Ranch

2011-06-16T18:34:00.000-07:00

Now when you are out on that bike ride in the Animas Valley or beyond you can stop by James Ranch and pick up something to eat at the Harvest Grill & Greens located at James Ranch. That's right, Cynthia has come home from an extended stay in the vast corporate expanse known as the city and has opened up a small cafe serving locally made goods with a focus on the items from James Ranch. Cynthia wanted to use an organic potato and has located some russets from the Alamosa Valley that we have cooked up for the food wagon. The chips are not burnt, but they will cook up darker because they are a baking potato not a chipping potato.

Jon Bailey has reworked some of the art for the Salted Bag and I can't wait to see the changes tonight.

Here are some photos from last years "Tour de Farms"

Denver Research Trip

2011-06-11T12:26:00.000-07:00

With the advice I received on my trip to Denver and prior advice, I believe I have been able to ascertain what most of the puzzle pieces look like but I still have a ways to go before they are all put together.

I was able to talk to a major producer of potato chips and get an idea of what a minimum order would look like and the associated costs, not including special ingredients and packaging.

It would be very hard to keep the odd chips in the mix that you can currently find in the bags of chips you can now find on the shelf under the "Chip Peddler" brand.

From there I visited the regional office for Snyder's of Hanover distribution and I was able to spend some time with Bob and Paul talking about the industry and some of the trends and success stories of companies through the years. Bob felt that if I followed the ideals of what the "Food should taste good" company and kept the product "All Natural" that I would have a better chance making inroads with the buyers and retailers.

Governor Hickenlooper stopped by town the other day and showed his support for the Durango Discovery Museum and the entrepreneurial spirit in the Four Corners Area.

The fires in Southeastern Arizona had put an uncomfortable smokey cloud in town, very reminiscent of 2002 when we had two fires burning around Durango.

Iron Horse Race Weekend & Coming Trip

2011-06-04T15:48:00.001-07:00

The Iron Horse weekend kicks off with an unofficial bike ride from SKA Brewing to Durango Cyclery and then to Steamworks Brewing Company which was attended by around 250 people this year. As we were riding down the I was asked if I was "the Chip Peddler" and I replied that I was, he went on to say how much he is supporting me and hoping that I succeed. I have experienced similar support from friends from all over the world as well as from people I have never met before.

Below is Scott Smith with one of the future Chip Peddler Cycles.

This years race to Silverton was won by no other than Ned Overend who has won 4 previous times before. The event also included a downtown crit road race and a mountain bike race that was routed through Steamworks Brewing Co.

The rest of the weekend was full of racing and other bicycle events culminating in a celebration of 40 years of racing from Durango to Silverton. A fabulous presentation was put together by Jon Bailey and set up in the D&SNGRR Train Museum and with images spanning the history of the event along with vintage bicycles set up on rollers powering the back lit images (here we see Jessica Reed putting in the watts). There was plenty of local beer on hand and Chip Peddler chips for all to enjoy during the evening.

I will be taking a trip up to Denver on the 7th if all goes as planned to visit a co-producer of potato chips and visit some distributors at the same time. I have been given some recent advice on how the chip industry is ran and some of the things that I might expect. Left with the advice that the climb will be steep, but the potential rewards can be great I will keep going.

As I rode up on Animas Mountain through the new flowers of the season, I was thinking about all the advice I have been given to date wondering how I will be able to pay my debt to those who have guided me along the way.

Advice & Delays

2011-05-25T18:59:00.000-07:00

I slowly absorb the advice that I have been given and apply it back in everyday situations, this has helped in decreasing costs and helping me to not stress on things that might be beyond my control. I was told to keep all of my production time into the most efficient time needed to complete the task. When I have a clear idea of what my production needs are it is a lot easier to manage my week, that's for sure. Another friend said that you need to swim like a Duck, with all the grace above the water and the feet below the water working away sight unseen.

I was able to sit down with Carolyn Lamb and she has given me some insight to some of the strategies employed by her and Paul Gelose while working on the Ricky's Lucky Nuts line of peanut snacks. They have quite a bit of proprietary information regarding the manufacturing process ans some of the other things it takes to get a product to market.

I might have mentioned that I am going to Denver (June 7th) to see a manufacture of chips and I hope to also speak with some distributors in the area to see what I should expect to encounter when I reach certain levels of capacity and demand.

The one constant with this whole "Chip Peddler" project is having to put up with constant delays. Instead of taking one month to build the kitchen it took four, when it comes time to open new markets the wheels turn slow, packaging takes forever, even trying to get to Denver has been delayed two times.

Memorial Day weekend is always a big one in Durango with the Iron Horse bicycle race happening all weekend with various bicycle events happening all around town. The kickoff happened Wednesday night with the DEVO Kids Race in Buckley Park accompanied by two of the many musical arraignments from the Stillwater Foundation.

Emery (In Pink) has not been active in the DEVO program for the last few seasons, but she still wanted to sign up for the race and in doing so held her own throughout the race.

For all of you who have signed up for the lunchtime shifts during the Iron Horse Bicycle event you should receive a bag of "Chip Peddler" chips in the bottom. Also, the 40th year anniversary party will be held at the D&SNGRR Museum on Sunday night starting at 6:00 or 7:00PM, I have seen two different times. They will be serving beer and "Chip Peddler" chips at the event. Jon Bailey has designed and orchestrated the full event complete with displays celebrating all 40 years of riding to Silverton and more.

QR Codes

2011-05-18T19:00:00.000-07:00

As painful as this symbol is to look at, it is the pathway to future marketing schemes. Currently this image will take you right back to this blog site on your smart phone if you have the right application installed. I think there are a lot of possibilities in using this technology by bringing the consumer into unique spaces created just for them. I keep thinking of how one symbol could bring a consumer to recipes and another to the company story or even upcoming events.

Supporting your local radio stations can be one of the best things you can do for your community. I was able to drop off some chips to all the volunteers at KSUT who were helping out with the Membership drive last week which also gave me the opportunity to meet some of the people behind the voices and great programing that we are able to listen to from that station. We also have 3 other great radio stations which are strong supporters of the community all meeting different needs.

As I left KSUT in Ignacio I took this picture of the station mascots' home just outside the doorway.

Taste of Durango went well, but as you can see from the photos it is time to step up my game. At some point I hope to build a little "Chip Peddler" wagon that I can tow behind the car for events.

The kids are learning what it take to engage in customers, sell products and keep track of money.

The trip to Denver to see the Chip Manufacture has been postponed due to weather, I hope to make it up next Wednesday.

I was able to catch part of the "Kentucky Deluxe" set during the Dandelion festival held last weekend, I could listen to them the "Lawn Chair Kings" and "Waiting on Trail" all night long and feel just fine about it. Come to think of it there are starting to become a lot of great acts in town these days.

While commuting home the other day going up "Crites Connect" in the Telegraph mountain biking trail system I came across the large mushroom that looked like a large piece of "Popcorn" coming out of the ground - I had never seen one before so I took this picture for all to see.

Anticipating the Future

2011-05-09T06:21:00.000-07:00

On April 28th I was able to meet with the CEO Network group, which is part of the La Plata County Economic Development Alliance, and received some great feedback on how to prioritize what my true mission is for the company and my vision for achieving those goals while still keeping my core values intact. We talked about the current state of the company, brand presence, difficulty in getting access to the marketplace and customer feedback. We also talked about trying to achieve all of this from the ground up, or outsourcing the product to professional once I have perfected the recipe so that I can spend more of my time marketing the brand and developing sales leads.

It was also pointed out to me that there are a lot of companies in town that are great economic engines without making all the products if any at their headquarters (StoneAge, Zukes & Ricky's Lucky Nuts).

I was able to talk to Bob Jones from Jones Potato Chips on the topic of having other people produce product and having it packaged under a different Brand Name. He produces quite a bit of product for other people and also has about 15% of his branded product made by someone else. We did the math on what time it would take to have my product produced and for last years sales I think production would have consisted of one long day on one of his production lines. I have set up a meeting on May 17th in Denver with Condor Snacks where they make potato chips to view the plant and discuss possible options for having some of the products made at there facility. This may sound crazy, but I have yet to visit a place where they make potato chips other than what I have put together.

Calendar:

May 11th - Chips at the KSUT 1 day membership drive.
May 15th - Taste of Durango.
May 18th - Durango Natural Foods, Local Appreciation Day.

The snow that fell on the evening of May 1st came as a surprise but I made sure to make the most of it with a great ride thru "Test Track" the next morning.

I thought I would also share with you a picture of the largest Bull Snake I have ever seen in the wild. Emery spotted it the other day on Animas Mountain.

Sustainability

2011-04-17T15:52:00.000-07:00

Lets start wit me admitting openly that I would always count carbon credits in my head, by that I mean that if I lived closer to my place of employment, took the trolley, rode my bike more often,and even sometimes walked in to work so that I could cash in those credits later when riding my dirt bike.

We have built up a society that is using raw resources so fast that we will run out, but at the same time if we went back to using horses and carts the planet as we know it might take a turn for the worse before it gets better. The question then becomes how to we turn our energy resource usage into a sustainable rate without crashing.

Last weekend EcoLogic Events held their 3rd Green Living Expo in Durango, CO at the La Plata County Fair Grounds and "Becoming more sustainable" is of course the big topic that we are all talking about here in the Four Corners not to mention in the rest of the world. This got me to thinking more about how big of an impact I have making "Chip Peddler" chips and how much of a carbon reduction I create by making potato chips closer to the growing location. Currently most of the potatoes from Farmington that are made into potato chips travel a minimum of 1,340 miles to get to you, something to think about for sure. I asked Mike Anderson at Rocky Mountain Chocolate Factory and he said the savings would be minimal at best if they (potato chips) were made here and shipped at a lighter weight, but the savings in sending them back would be a start. At the moment it would cost around $1,500 to send a truckload 1 way ($3,000 both ways) so you can see that energy is a significant cost of the product.

I keep thinking that a potato that gets turned into chips in Colorado has so much more going for it then one that finds itself in Texas.

For those who missed it the X-37B came through town and spent a night in Bodo Park.

Rocky Mountain Grass Poloships" took place in Buckley Park on Saturday night. The family and I stayed until 11:00 PM, right around the time the police came by for the 2nd time wondering when things were going to wrap up, the neighbors were starting to complain. See Results Here

I also wish that the video card did not fill up before the end of the National Anthem, oh-well.

2011 Game Plan

2011-04-13T07:09:00.000-07:00

On April 19th it will be 1 year since Chip Peddler chips were made available at retail to the Durango marketplace. With a full year behind us it is now time to analyze the list of accomplishments and challenges yet to come.

Great Brand awareness

Consumer acceptance

The introduction into retail outlets including 1 national retailer

A solid line of products with the flexibility to put anything from rice chips to beef jerky chips under the brand name "Chip Peddler".

I was even asked if I had tried making chips from a Jerusalem Artichoke, I had never heard of them before.

We have received some additional guidance in determining a clear business plan that positions the company for 4 stages of funding from various levels of investors. (Notice the plan is not draw out on a napkin, but the latest issue of the Telegraph)

The idea behind Durango Snack Werks and the Chip Peddler line of products is the simple premise that creating jobs in a community starts with an understanding of which jobs created are true economic engines, not one that relies on other forms of employment in order to survive. A community should be first created around some type of industry with houses and hair salons to follow. You should not build a bunch of homes and hope that someone moves in who starts a business later to create jobs (am I making sense).

We are now at the stage of working with additional support to bring the company to a point where a small set of early investors will be able to buy in (mid summer). With the 2nd stage of funding new equipment will be purchased to achieve better production numbers. From there the plan will be to set the stage for "Angel Investors" to help with the positioning a later group of Capitol Investors before a major manufacture would be approached.

To reach this goal the packaging will be expanded the encompass up to 4 designs on the shelf and distribution at our major supermarkets in Durango (By the way Chip Peddler Chips can now be found in Albertson's, just ask). Opening up new markets along the western slope (we are now in Ridgway Natural Foods) and hopefully working with Colorado Food Showroom in Denver to reach the Front Range and I-70 corridor.

After spending many years in this community I have tried to put together some of the things I have picked up through the years to try to make this concept work and here are some of my observations.

1) - We have a lot of raw potato resources south of us and they are sent to over 700 miles to Plano, Texas to be made into snacks, we should be making some of those items here. (For every pound of potatoes you will end up with 1/4 pond of chips, they spend a lot of $ hauling water to Texas).

1b) - A lot of corn is grown in the state of Colorado which can be made into more than just syrup.

2) - The Durango & Colorado Image have a ton of marketing value and people who live here that enjoy supporting new ventures.

3) - The 4 Corners business community has a great sense of entrepreneurial spirt for fostering such ideas.

4) - We have all the talent needed to achieve this goal in our local communities starting from college graduates and virtual businesses to chocolate, beer and soda manufactures that handle their own distribution.

On another note - I have picked up the last couple of sacks of potatoes from Navajo Mesa Farms just south of Farmington, they will last for a few months before I will ordering another load later this summer from Bakersfield, CA.

I am not exactly sure what it is inside me that makes me want to pick through half of the old yards along the La Plata Highway, but each time I drive the route I want to stop along the way just to admire that vast American Landscape in decay.

Chip Peddler chips can be tasted at the Green Living Expo is this weekend as well as the Bicycle Polo event that will be held under the lights Saturday night in Buckley Park, this event will include bleacher seating.

Durango Meltdown happened last weekend, here is a picture of local band - Giants Dance.

Sneak a Peek

2011-03-27T17:07:00.000-07:00

Around 200 million years ago a body of water existed in North America that became know as the Sundance Sea. Part of an arm of what is now the Arctic Ocean that receded and left a salt flat when the Colorado Plateau began to rise. It is here in the deserts of Utah, underneath a layer of clay known as the Morrison Formation a special ancient sea salt has been preserved free of the pollutants from a modern world.

The story on the bag for the Salted Tortilla chip is all about getting the finest local ingredients possible and making the best snacks we can from them and this idea revolves around the Redmond "Real Salt" from Utah. So far the illustration for the bag is looking very nice, I can't wait to see it with color.

Getting ready to place product in Albertson's means getting a nice new display ready as well. I have been racking my brain trying to come up with something that will reflect the essence of what the Chip Peddler is all about. Some of the ideas that had been discussed involved using pieces of a bicycle, but in the end I came up with a paper and cardboard sculpture reflecting the era of the snake oil salesman. (I think I pulled it off)

If Don and Dave at Albertson's will let me put "Salty" up you should see chips in the store this week. (I am still crossing my fingers)

I also received quite a bit of response on the Investment Opportunity offering and I will keep those who are interested in the loop.

In other news: Durango Wheel Club had its annual membership party at Ska on Monday the 21st where local favorite "Waiting on Trail" was playing for the crowd, if you have not heard the band play catch up with them most anytime in Durango or at the up coming up this April 8th, 9th & 10th Durango Meltdown.

Soup for the Soul happened on Wednesday the 23rd at the La Plata County Fairgrounds where we donated regionally sourced, locally made, salted potato chips.

DEVO Training Camp is coming soon and we will be able to make sure all the campers taste the new Green Chili & Cheddar tortilla chips during there stay. The family and I are hoping to make an overnighter out of the event.

We will be in attendance at the Green Living Expo held the weekend of April 16th and 17th. Also being held the night of the 16th at Buckley Park will be a Bike Polo tournament where we hope to be bringing the crowd chips and sodas, hot dog vendor style. (Get your chips, get your sodas)

P.S. some of the trails are now open in Durango. For those who want updated conditions check out the Trails 2000 trail conditions page.

Spring is Coming

2011-03-16T06:28:00.000-07:00

The Kickstarter campaign did not reach the goal online, but that does not mean that it was not a success. It has lead to discussion of what the company goal is and how to get there. For those who still want to help fund the "Salted Tortilla" package you can make a donation directly to Jon Bailey to help pay for the design work and the advertising opportunities on the back of the package are still going to happen.

After spending the last year creating a kitchen where I could legally make the product, working on the brand and getting feedback from the local marketplace, Chip Peddler chips is now ready for the next step in the goal to become a regional player in the world of chips. I am now working on an Investment Document to help speed up the processes in production and strengthen expand the packaging of the product line. I you are interested in being part of a new and exciting company let me know and I will make sure that you are sent a copy of the Investment Proposal.

What can become of an investment like this?

About Stacy’s Pita Chip Company
Stacy’s Pita Chip Company was founded in 1997 by a social worker and a psychologist with a passion for good food and a commitment to healthy living. With a desire for a career in the food industry, but without the capital to open a restaurant, Stacy Madison and Mark Andrus began serving healthy pita bread roll-up sandwiches in Boston’s Financial District. As an incentive, the bread was baked into pita chips and served to customers waiting in line. They became an instant hit and the lines grew longer each day. It was the customers who encouraged them to get the pita chips into stores, thus Stacy's Pita Chip Company was born. Thanks to loyal customers, Stacy’s chips are now available nationwide.

Jan 12th, 2006 PepsiCo announced today it has completed the acquisition of Stacy’s Pita Chip Company, the top selling pita chip maker with sales approaching $60 million in 2005.

In less than 10 years this company was able to become acquired with a purchase price many times higher than the yearly sales.

Are there other people thinking of the same ideas, yes. I was told about the new "Lucky Corn Chip" company out of So. Cal that was doing product tastings in Aspen. Here is more on how the company started and where they hope to be.

Starting out story
Follow up story

I was able to pick up more potatoes a couple weeks ago, thanks again go out to Durango Party Rental and Navajo Mesa Farms. Here you can see potatoes getting ready for the coming planting season.

We are getting ready to put product into our local Albertson's store and I am working on a new special Point of Purchase for the larger retail markets that should be eye catching and fun. You will also see some smaller P.O.P.'s show up at some of the other outlets as well.

I hope everyone enjoyed the colored potato chips because that is the last that you will see of them until next year. (I was little bummed that I could not use them all before they became to ripe to make chips from anymore)

I also stepped in for Bob Kunkle to lead the discussion in his business class while he was on vacation. Here you see Peter Schertz from Maria's Bookshoptalking about buying an existing business.

Chip Peddler - Act 2 / Scene 1

2011-03-01T05:45:00.000-08:00

The start of the 2nd year in business is shaping up to be a furious one. Durango Snack Werks has been issued a vendor # for Albertson's and we are in the process of completing the paperwork for the King Soopers/City Market line of grocery stores. The product will only be available in our local area for the moment with a chance for expansion into other markets as time goes on.

In order to make sure that I can meet the demand at the larger markets you will see only the tortilla chips on the shelf to begin with. This has led to stepping up the timeline on the artwork for the Salted Tortilla chip bag with the hope of getting it to press by the end of March (hopefully sooner). The Kickstarter campaign is working great and has lead to discussions about taking on outside funding. If the funding goal is reached on the Kickstarter campaign the funds will be going toward a 3rd flavor in the tortilla line of Chip Peddler products.

You might also have noticed we have introduced a Green Chili & Cheddar Tortilla Chip in the small bags at locations such as Exxon Gas Stations, Durango Brewing Co., Durango Deli, Ska Brewing Co., RGP's, Nini's, and the Durango Bagel. This is a Natural Cheddar Cheese and Jalapeno blend that I am sourcing out of Washington State with Commercial Creamery. Please give me some feedback, this might be the 3rd flavor.

I was able to attend this years Homegrown Retreat presented by Growing Partners of Southwest Colorado. I kinda felt like I was out of place with my product being sliced thin, fried in oil, seasoned and then put in a package, but at the same time I knew that most of the people in the room ate chips at some point in time through the year. The highlight of the meeting was the formation of a Food Policy Group which should help new operators with understanding current Government Food Policies and helping direct future policies by understanding the process.

On a sad note the world lost Herman Haberl who was the owner of the Ochsenbraterei (Ox Rotisserie) tent at Oktoberfest. He started with a small cart selling beer and roasted ox, to owning 1 of 11 beer tents that set up each year in Munich.

Click here to see the article.

A couple of weeks back you might have heard me on KIQX 101.3 with Chris Garcia. I want to thank the folks at the station for all of the support on this project and allowing me to come up to the station and talk about my company on the air.

45% of Funding Goal Achieved

2011-02-08T18:48:00.000-08:00

The campaign to raise the initial money needed for the prepress cost of the "Salted Tortilla" chip bag has reach 45% of the goal. This money will go toward paying the illustrator (Jon Bailey), getting the nutritional fact completed, make the printing plates and print the minimum of 10,000 pieces.

Here is the current Salted Tortilla bag sitting next to the new Lime and Sea Salt Tortilla chip.

Here is your chance to participate in the growth of a true start up company.

There are some great Premium's that are being given away with each pledge including Chip Peddler Socks, promotional space on the back of 10,000 Salted Tortilla chip bags, Chip Tastings and more.

Go to Kickstarter to learn more about how your involvement can make a big difference.

I have also included the video that has been posted on Kickstarter at the bottom of this post.

As of 2:00 PM today you can find Chip Peddler chips at the Rite Aid store in Durango, great people, great prices.

You might also start seeing Green Chili & Cheese Tortilla chips in the small bags soon at some of the coffee shops, restaurants, gas stations and breweries. We are sourcing the seasoning within the western states region with the chilis coming from New Mexico and the cheese from Washington state.

As you know its all a work in progress, early days when I am cooking, cleaned up the shipping room some and Ron Andrews and I are still working on the seasoning to bag device.

Progress Update

2011-01-22T07:26:00.000-08:00

As of my last post I was hoping that I would be in Albertson's at this point. As some of you know this is not the case yet but I am still trying as hard as I can to get in the door. Don, the local manager has been great to work with but the decision is made in Arizona. City Market will not be easy as well with the decision being made in Cincinnati by the powers that be at the headquarters of King Soopers which owns the City Market chain stores. I am trying to strike a balance between passive and pushy on the subject when I talk to staff at the stores. The real irony of the situation is that I might find a more receptive retailer in WalMart which has embarked on a program to buy more locally made goods, I will be visiting the Durango store soon to talk to the manager about the program to see if I can qualify.

I can say that sales at all the locations where you can find my product has been very consistent through winter months with Nature's Oasis, Durango Natural Foods, PJ's Gourmet Market, being the larger retailers where you can find an assortment of flavors of Chip Peddler chips. Smaller retailers to note would be: Durango Deli (at the airport), local Exxon stations, Ska, Durango Coffee Co., RGP's (in the Main MAll), Guido's, Mountain Air Gourmet, Durango Brewing Co., Nini's Taqueria & Bread (Durango Bagel next week) - what a great community we live in to get this much support from the independent & locally owned businesses.

I went to throw glass into the recycling bin behind North City Market and was amazed at the amount of local brands that I could see. How many can you count, a bag of chips for the person that get the same # the I do.

In the kitchen I have been working on trying to develop a device that will take me from seasoning to bagging quicker than the current method of spreading the chips out, seasoning them, shaking off excess crumbs and seasoning, then scooping them out of a bowl to weigh, then sealing the bag. Ron Andrews, owner of King Cage, has been helping with some of the design and fabrication of the device which should decrease the time it takes to do this in half. Ron also helped me with improving the cutting wheel with a tightening washer and the blade, (see video) also an oil capturing gutter that is keeping a lot of oil from getting on the floor, this has been a big problem so far.

The new package for the Lime and Sea Salt Tortilla chip has come in and it looks great. Illustration was done by Jon Bailey and the printing handled by Stixon Labels out of Albuquerque. Now trying to figure out how to get the next bag designed and printed. As I am starting up the amount of capital needed to make each decision a reality can be quite a bit so I will be asking for your help in the near future with a fundraising campaign to make this happen. The idea for the image on the Salted Tortilla package is all about finding the right salt for the chips. I am hoping to ride my bike (Jon might come to, anybody else want to go?) to Redmond, UT. in late March, or early April - the trip will take me (us) through Canyon Lands and the San Rafael Swell in search of the Ancient Sea Salt (Real Salt) which is the best that can be found in the area if not the world.

Roses are Red

2010-11-19T18:41:00.000-08:00

Roses are red, violets are blue and Chip Peddler chips are these colors too.

I will be chipping up some new varieties of potatoes for the holidays which have been developed by the CSU Research Center in the San Luis Valley. You will see the Mountain Rose and Purple Majesty chips mixed in with the Atlantic potato chips currently in the Salted flavor on the shelves of DNF, Huck Finn Exxon, PJ's Gourmet Market & Nature's Oasis in the large size bags and I will be getting some smaller bags out to the rest of the retail locations for your tasting pleasure.

I was also able to talk to the owners of Worley Seed about working together in the future on projects together.

No trip is complete to the valley without a stop by 3 Barrel Brewing Company and the Organic Peddler both located in Del Norte, CO.

Potato School

2010-11-13T16:15:00.000-08:00

Last Thursday I was able to pick up some more potatoes in Farmington and it looks like I will be picking up some purple and red potatoes from the Alamosa Valley on Thursday the 18th. I also would like to thank Jon Sigillito from Durango Party Rental for the use of his trucks to pick up these shipments.

I have been trying to time the deliveries of my potatoes to match when I am running out of the last batch so everytime I get low on potatoes I contact one of my suppliers. I had talked to Brian at Navajo Mesa Farms and he assured me there would not be a problem picking up potatoes but I had troubles getting a hold of him closer to the day I needed the potatoes which led me to understanding my other options in case I was looking for potatoes through the winter. My supplier in Bakersfield had started storing the potatoes for next years seed crop which meant keeping them around 40 degrees for the rest of the winter until they started planting again.

I called over to the CSU Extension Center in the Alamosa Valley where they have some Purple Majesty & Mountain Rose potatoes waiting for me, but when I asked about regular white potatoes in the valley the feeling was everything had been put in cold storage. I then e-mailed a sweet potato broker out of Fresno and found out they are in there prime shipping season and the sweet potatoes will last for 10 to 12 months if they are unwashed and kept at the right temperature. You might see some sweet potato chips on the shelf in the near future.

By this time Brian at Navajo Mesa Farms had e-mailed me back confirming that I would be able to pick up potatoes, but it got me to wondering if I would be able to keep a supply coming in through the winter. Brian said they keep there potatoes at 52 degrees all winter, which is perfect for "chippers" to stay white and not burn due to sugar accumulation which happens when you hold a potato at a lower temperature, so I will have a source of potatoes for sure through the winter.

Brain also gave me a tour of he facility and I was able to ask some questions about certain characteristics that I see on the potatoes which can show up in the chips. He was able to explain what causes most of the items you see on a chip, none of which are harmful if ingested. (See chart below)

We were also joined by a fellow farmer, Anthony, from Michigan who persuaded me to pick up some unwashed potatoes which had been handled less and therefore have less bruising, which tends to show up on the chip as a little white or dark spot depending on the sugar content of the bruise.

Visiting Accounts

2010-11-07T15:55:00.000-08:00

There is nothing better than riding your bike to visit an account. This last weekend I was able to ride down to Sutherland Farms located just outside of Aztec, New Mexico, spending the night in some of the coolest countryside around (I did see some big tracks close to my campsite the night before).

I used most of the route that I take when I ride to Farmington and for those who have been on the ride the roads were really smooth but I do have two goat heads in my front tire.

I should have my nutritional facts done for the salted, BBQ and sea salt and vinegar potato chips done soon so I can send off artwork for some new stickers. Also the Lime and Sea Salt tortilla chip bags should arrive by early December with the hopes of making them into some gift baskets this year. I have also picked up a few new accounts in town including Nini's Taqueria, Guido's and Bread. Look for the whole selection of chips at Albertsons in early December.

Building a Brand

2010-10-23T17:00:00.001-07:00

I have been focusing on getting the "Lime & Sea Salt" tortilla chips into the major retail markets. I hope to have this bag printed by Thanksgiving.

This has taken many small steps to get to this point starting with trying to determine which product was going to be the first that I would spend the $ on with getting nutritional facts done for the back as well as signing up for my own bar codes. I have also been working with Jon Bailey to create the artwork for the bag which is loosely based on a bike ride through Europe that inspired the flavor in the chips.

I think I may have been wasting some of my time trying to get everything perfect before I put a product into the supermarket. This being said I will be moving forward with the current "sticker on clear bag" packaging and getting a UPC mark and the nutritional facts done with some of the other flavors of my chips to make them available at more locations along side the new Lime and Sea Salt package.

For those who listen to Four Corners Broadcasting I have been able to team up with Durango Soda Company, the makers of Zuberfizz, in a promotion on Cosmo's show on 101.3 where he has a trivia contest at 3:30 and you can get a six pack of "Zuberfizz" soda and a bag of "Chip Peddler" chips, listen in to win.

I have had a few little glitches this past month and a half that have kept me on edge.

1) Electric wire is loose on my fryer and causes it to stop.
Call Ron Andrews and in 2 days I am back on track with the machine running better than ever.

2) New chip staging rack fails after 1st test.
Currently working fine with new additions.

3) Starter on car fails.
At least waited it waited to go out two days after we did Bolam Pass on the way to Telluride.

For those who are into cycling I will have some chips to hand out as premiums for the upcoming Cyclocross Series put on by Dave Hagen and presented by Animas Orthopedics Association.

Eat Local Week

2010-09-06T14:26:00.000-07:00

Community awareness can mean a lot of things but when you are talking to a Localvore (someone who eats local foods to their area of inhabitance)this can mean being aware of the food that is grown in your area, when the bees pollinate, what season the fruit becomes ripe and how to prepare it when you finally harvest. In Durango we have started to celebrate "Eat Local Week" with all kinds of different events where you can participate.

Things have already began with the Healthy Life Style La Plata - 4th Annual "Tour de Farms" which took place on Sunday the 5th. We started at the La Plata County Fair Grounds and heading north up the Animas valley to visit Linnaea Farm, James Ranch and the Hall's family owned farm while enjoying a 30 mile ride.

Some of the restaurants in town are preparing meals made up with local ingredients during the week, if you are eating out please try someone who is providing the freshest, healthiest meal they can for you.

Participating restaurants include:

Cocina Linda
Durango Coffee Company
Durango Natural Foods
Nature's Oasis
Zia Taqueria
Carvers Brewing Company
Cyprus Café
Cosmopolitan
Guido’s Favorite Foods
Ore House
Purple Haze Bar & Grill

The Community Foundation dinner will be held on the 8th in the Coldwell Banker parking lot - $40.00 per plate. More info on tickets call 375-5807

Durango Natural Foods and Nature's Oasis will be featuring local items all week and donating 5 percent of proceeds to Local First. Restaurants will be offering two local-foods specials each day, with 25 percent of proceeds going to Local First.

Don't miss the final Iron Horse Chef cook-off on September 11th at the Durango Farmers Market - Chefs, I now have "Chip Peddler" chips available at the "Cole Ranch Brand" booth as part of a Brat & Chips combo.

This last week I was also able to pick up some fresh potatoes from Navajo Mesa Farms just south of Farmington.

Bayfield to Zuma

2010-08-28T15:15:00.000-07:00

I will be part of quite a few upcoming events as fall approaches, starting with being part of DNF's Eat Local Week Sept. 5th - 12th with select products on sale by the store. On Wednesday the 8th of that week will be "The Community Taste" going on in the Coldwell Banker parking lot starting at 6PM - brought to you by the Community Foundation. I will also have my booth set up that night at the E8 event put on by EcoLogic Events, Ryan from RGP's will be doing the "Meet & Greet" for me while my wife and I enjoy dinner (kids will be running around somewhere). The Mancos Farmers Markets on Thursdays have also been a good place to get the name out and tell people that they are available at P&D Market, Zuma across the way, Let it Grow Nursery and Garden Market in Cortez and if you shop at the Dolores Market to ask Taz if he will start to carry them. I have also given my word to be the official chip supplier to the 1st Durango Salsa Festival being held on September 18th between 3rd & 4th Ave. and inside St. Marks Episcopal Church.

I have also got an agreement with Cole Ranches for my chips to be served with their brats at the Durango Farmers Market for the rest of the season, Durango Brewing Company will have my chips at their beer tent during the Durango Autumn Arts Festival on September 11th & 12th. Sunnyside Meats will be carrying the chips for the Oktoberfest event later this year and I am talking with Sutherland Farms about selling the chips during the fall when their farm market is open.

I am planning on picking up another load of potatoes from Navajo Mesa Farms, which is just south of Farmington, on Tuesday of next week which should be a nice addition during "Eat Local Week"

Event Marketing

2010-08-06T17:41:00.000-07:00

A week ago I was part of 4 events from July 28th to August 1st in and around the town of Durango, with the first one starting on Wednesday with the "Evening's on 8th " put on by EcoLogic Events, then the Mancos Farmers Market on Thursday, Saturday, "Chip Peddler" chips greeted the finishers at the end of the "Hermosa Bicycle Classic" and I set up a booth at the Michael Franti concert on Sunday where 3,500 people came to see him play.

Event Marketing can be a big part of starting a new business and starting a chip company is no different than a lot of other food companies that are new and trying to break into the marketplace. I however have found that certain food categories do better at some events than others, case in point.

Wednesday, I had a "Multi Model" board meeting, so I just after setting up the canopy Kris and the kids took over representing the company at the booth. When I got back to the event the street was packed and Kris was very busy talking with some customers.

Thursday, the farmers market in Mancos had about 6 booths most of whom had quite an array of vegetables for sale and as I set up I was not sure what to expect while I getting the booth ready. Things went really well by the end of the night and the response from people was great.

Saturday, I was not able to make it up to the finish line for the Hermosa Classic but I was able to get a quote from "Chad Cheeney" "Dude, thanks for the post race chips. so f***ing delicious! People were pumped and people were telling people to go grab some before they were gone. Good stuff after a race for sure!". It is this type of response that gives me that warm feeling inside.

Sunday, I thought for sure that I would attract quite a bit of interest at the Michael Franti concert, after all, what goes better with trustifarian hippie music and beer than chips. We'll a lot of things besides chips as it turns out, Ice Cream, Pizzas, Hamburgers, Henna Tattoo's, Brats and even Hula Hooping to name a few. If I had 6 people visit the booth I might be exaggerating the numbers.

I heard a noise out behind the kitchen and went to see what was up.

See my bike commute below.

The Montezuma Triangle / Safe Roads Fundraiser

2010-07-21T13:22:00.000-07:00

After a sales push last week in Montezuma County "Chip Peddler" chips will now be available in P&D Grocery in Mancos and Let it Grow, Nursery and Farm Market in Cortez. High Desert Foods, bakery in Dolores has been carrying them since June and they are a perfect addition to any of there lunch items which are all natural and locally made. I will be setting up a booth at the Mancos Farmers Market Thursdays night from 5-7 on occasion for the rest of the year.

This Saturday, SKA Brewing is holding a fundraiser for Safe Roads Coalition where they will be tapping the "Wheel Sucker Wheat" at 2:00PM at the brewery in BODO park. At the same time most of us have been waking, eating, shuffling kids, working, shuffling kids, playing, sleeping - repeat, this last week - Dave Thibodeau and Arlo from SKA have been touring the state of Colorado. They have been riding with a group of riders from Avery Brewing and Oskar Blues Brewing located on the front range raising awareness and money for bicycle safety, check out the blog Wheel Sucking Brewers. They would love to have a group of riders join them as they ride through town on their way to the brewery, I can't tell you exactly when they will get here, but if you plan a ride north on 550 that day you can turn around when you see them and ride on back with the crew jealous that you did join them whole way. I am still trying to decide my strategy on joining them. I also heard that Wade from Bour'e might have the secret # and you can e-mail him for it. wade@boure.com

If you do nothing else, get out the the high country and see the flowers this year.

Molas Pass to Coal Creek Trail

The Next Step

2010-07-09T18:37:00.000-07:00

July 19th will mark 3 months of retail sales for "Chip Peddler" chips and I have a lot of great feedback on the products I am now making as well as a greater understanding of inventory, production, sales, and distribution. These last months have given me a great sampling of what the retailers and consumers want also, from flavor feedback to out of the area distribution hurdles. I am hoping to take this information and get 1 or 2 of the best selling products into the major retailers with a bar code, nutritional facts and an expansion of the graphic story. Here is also a great story on chips by Splendid Table Public Radio Scroll down to the audio part on Potato Chips, click and listen.

The introduction of displays has really helped sales in locations like PJ's Market, Nature's Oasis and Dietz Market. Retailers, let me know if you would like something custom for you store or restaurant. I am thinking of changing the size of the smaller bags to reflect what the competition is offering. I have more chips in the bag and a slightly higher price per OZ., add that up and my chips look like they cost quite a bit more. Ounce to ounce they are very close.

Monty Rutherford from the Colorado Association for Manufacturing and Technology stopped by and we discussed small adjustments with my equipment have led to an increase in goods produced on the potato chip line and different techniques while cooking tortilla chips has increased their production times also. The new bags I am looking at will also save me time during filling and sealing as they are a bit more stable and easier to manage.

Joe Keck from the Small Business Development Center has been helping me run the Cost of Goods numbers along with sales projections to find out when the company might turn a profit, this is the scary part about opening up your own business, profit by 1st quarter 2011 is the goal.

Up coming events:

E-8 (Evenings on 8th Ave.) every Wednesday night through the summer,

SKAVERY (Ska & Avery) Brewers release of Wheel Sucker Wheat - June 24th at Ska Brewing. This event is the final day of a benefit ride for charity and the craft - brewing brotherhood, where 12 brewers will ride 470 mile in 6 days climbing over 42,000 vertical feet. Beer at 6512 has more info. Cycling enthusiasts are encouraged to join the brewers as the come to town - they are starting in Ouray that morning and you can pick them up anywhere along the route. 2:00 is when the party starts at SKA Brewing, I have no idea when the riders actually get into town. When this beer was released last year I was just getting used to the Hefe Weizen style of beer and then I was able to visit Barvaria and the Spaten Brewery where the Hefe Weizen type of beer has been perfected. When I come home and taste the Wheel Sucker Wheat again, it is true to the style with a little more A.B.V. this was one of my favorite beers from last year. More to come on this event.

Evenings on 8th = E8

2010-07-02T14:11:00.000-07:00

Eco Logic Events will be putting on "Evenings on 8th" an event located between Main and the Railroad tracks on 8th Ave. every Wednesday night (4-8) all summer long. There will be various musical acts, craft and food vendors, great beer from all the brewers in town and "Chip Peddler" chips are also available.

I am currently refining every part of my production process to see where I can maximize my time and $ spent on raw materials. One thing this means is Onyumm will be on hold for a while until I can get some of the costs down on making the chips and packaging them. Also the Sea Salt & Vinegar Dark Potato chips will be running out soon, this was a limited edition chip made from Farmington Potatoes (hopefully some more soon from Farmington). At the same time I am now offering the "Lime & Sea Salt Tortilla" chip in a smaller (lunch size) bag.

Where can I find your chips!

2010-06-23T20:31:00.000-07:00

I have been able to get "Chip Peddler" chips placed from the the Durango Deli at the La Plata County Airport to Honeyville and quite a few places in between.

Durango Deli at the La Plata County Airport carries the small 2 oz. bags of potato chips (I tried the bigger bags in the gift store and they did not do as well).

Dietz Market carries the 8oz. Salted & Lime & Salt Tortilla chips as well as the Salted and Onyumm potato chips in the 5 oz. size. (New Display)

4 Star Exxon (By New Country Auto) carries a variety of 2 oz. Potato Chips and the 8 oz. bags of Tortilla Chips.

Tempo Exxon (By Economy Nisson) Same as above

SKA Brewing carries 2 oz. sizes of (Salted, BBQ, Onyumm & Sea Salt & Vinegar Potato Chips).

Serious Texas BBQ carries 2 oz. sizes of (Salted, BBQ, Onyumm & Sea Salt & Vinegar Potato Chips).

Nature's Oasis carries 5 oz. sizes of ( Salted, BBQ & Onyumm Potato Chips), & 8 oz. sizes of Salted and Lime & Salt Tortilla Chips). (New Display)

Durango Natural Foods carries both the small size potato chip bags for the deli and both the Salted and Lime & Salt Tortilla Chips.

Mountain Air Gourmet (a new place on the corner of College & Main) They have a complete product line.

At the Durango Coffee Co. you will find the current 2 oz. Potato Chip selection (see above).

RGP's (In the Main Mall) ditio,

Durango Brewing Co. ditio, dito, dito,

Durango Wellness Center (In the CrossRoads building) Has a full selection.

Huck Finn Exxon carriers a full selection of Potato & Tortilla Chips.

PJ's Gourmet Market at Trimble Crossing currently has a selection of 2 0z. Potato Chips and both Salted and Lime & Salt Tortilla Chips. (New Display Coming)

Honeyville is also carries a full line of chips, both potato and tortilla. (New Display Coming)

Dark Potato Chips

2010-06-06T14:07:00.000-07:00

Bob Jones from "Jones Potato Chip Company" sent me this photo (circa 1960's) to me and described how his family started a potato chip company in the 1940's. It was Bob who suggested that I perfect the cooking of the potatoes that turn a little darker that I received from Farmington. (See below the "Sea Salt & Vinegar" line)

Every week sales have been picking up and I am starting to get an idea of which products are doing better depending on the location, product and size of the offering.

I also have release the "Limited Edition" Sea Salt & Vinegar chips locally here in Durango and only available in the 2 OZ. size. I only have about 1,000 of these that will be made and then the potatoes are gone, I will however talk to Brain from Navajo Mesa Farms to see what they may have available in the coming months.

Everytime I think that I would like to make a "Blog Post" it seems like there are better things to do, like trying to get new displays made, fry chips and get everything delivered.

Sorry no video this post.

New Accounts/Taste of Durango

2010-05-18T14:36:00.000-07:00

I have been trying to find the balance between sales and production and I am sure it will be an ongoing challenge I as continue to build accounts.

Speaking of accounts you can now find "Chip Peddler" chips at the Airport, Dietz Market, SKA Brewing, Nature's Oasis, Durango Natural Foods, RGP's, Durango Coffee Company, Durango Wellness Center, Durango Brewing Company, PJ's Gourmet Market and in Dolores at High Desert Foods bakery just out of town on you way to Telluride.

They have been selling quickly at Nature's Oasis as you can see from the photo.

I have also made agreements to have chips show up at 3 of the Brennan owned gas stations and the Exxon station out by Bread. They will be available at Serious Texas BBQ South in a couple of weeks and Honeyville would like to have them on display by Memorial Day weekend. I have also talked to quite a few other establishments that have shown interest, including Roots Natural Foods in Ignacio and Albertson's in Durango.

With a little adjustment in cooking temperature and slice thickness, the potatoes that I got from Farmington are turning out great the hold up is deciding what to flavor them with. So far I have tried; Salt, Coconut Sugar & Salt, Cumin & Salt, Pepper & Salt, Vinegar & Salt, Coconut Sugar, Honey & Mustard and Cinnamon & Sugar.

I received a great response at this years "Taste of Durango" that was held on Sunday, May 16th. BBQ was the crowd favorite by far selling out before the day was through. My new flavor Onyumm was set out for tasting the whole time which helped lead to quite a few sales of them.

Great Advice

2010-05-06T18:42:00.000-07:00

I might have spoken too soon about the new potatoes not working out.

Here is what my advisor Bob Jones, owner of Jones Potato Chip Co.out of Mansfield, Ohio, had to say about the potatoes.

"Before you get rid of all of the potatoes, some people like brown chips. If you can get a label printed up fairly soon, you can fry those babies up and sell them for what they are. Before I moved into my new plant, we used to hand inspect the brown chips out of our production. The ones that looked "nice" we bagged up and sold in my store. We had a waiting list of customers that had called in to see if we had any. Now I have a machine that sorts out the brown product and it is a pain in the neck to handle the chips so we stopped selling them in the store. Customers are grumbling about that."

Bob Jones - Jones Potato Chip Company

I think I will be looking for a new name and the perfect beverage to pair with them as I start testing the possibilities.

Stay tuned...

Sometimes things for free, are not really free.

2010-05-05T21:36:00.000-07:00

I was getting excited to go down to Farmington and pick up some potatoes that Frito Lay decided to not use, I soon found out why. Too much sugar content in the potato which leads to an over browning of the chip. Bill Manning from High Desert Foods picked up a gunny sack full and wants more next week, does anybody else need a few potatoes?

I will be able to pick up some potatoes from Farmington in July where I am assured they will stay nice and white when cooking.

As you can see I finally hit the bottom of the first bag.

On the shelf at Nature's Oasis.

Anyway, I have some coming from Bakersfield as soon as the week of May 17th - 21st. I have also had some pressure to produce the Cinnamon Sugar Sweet Potato soon. I will check my sources, stay tuned.

Look for the new "Onyumm" flavored Potato Chip at Ska Brewing, Durango Coffee Company, Dietz Market & Durango Brewing Company this week.

I will be at the "Taste of Durango" on May 16th in beautiful downtown Durango, stop by if you want something crispy to got with the rest of the food you bought.

Where to find "Chip Peddler" chips

2010-04-28T07:39:00.000-07:00

It has been 6 weeks since I first got the chipping machine installed and Chip Peddler chips can now be found up and down our part of the Animas valley. Starting from the south you can purchase locally made chips at Dietz Market, Ska Brewing, Nature's Oasis, Durango Natural Foods, DSNGRR (on the train), RGP'S, Durango Brewing Co. and PJ'S Gourmet Market north of town at Trimble Springs (Friday Delivery).

I have been fine tuning the displays and I will need to retro fit some of the first ones that I put up.

It looks like I will be able to pick up some potatoes from Farmington this coming week. I will get to meet the farmers who grow the potatoes which will become delicious chips once in Durango. It is this connection that will keep the dollars spent on "Chip Peddler" chips in our local and regional economy.

I have also been making tortilla chips and I have started using a supplier out of Grand Junction who sources their corn from local growers in the Grand Valley. They have set up a distribution location next door to me so it sure makes ordering things really easy. I will also see what the possibilities are for sending finished goods back on their truck going north to see if I can find a market for the chips in Grand Junction and the surrounding area.

I set up the display during the Squawker bicycle race this past weekend - gotta support two wheels when you can.

Green Living Expo

2010-04-18T17:15:00.000-07:00

Last weekend the Green Living Expo was going on at the La Plata County Fair Grounds and I had my first real taste of the local event circuit that I will be attending this year as part of my "Community Awareness" part of the business plan. The response to the samples that I had out was very positive with a lot of demand for the "Lime & Salt" tortilla chip. I was getting requests for the "Sweet Potato Chips" that I have been making, but I have yet to make the order for some from the CO-Op in California. Josh from "Silverton Chocolates" was set up next to me the first day where we had a lot of fun making up "Chocolate Chips" with some of the various potato chip flavors that I had brought to the event. On of the flavors I had brought was an "Organic Seasoning" salt from Redmond Salt Co. and I had been asking patrons to help me name the chip. The favorite was "Onyumm".

Scott Smith (Imagesmith Photography) has a sweet cargo bike that he has been talking about - being the perfect delivery velo. I could see a basket of chips in the middle with an array of seasonings arranged around the outside so one could buy their bag of chips and season them however they like.

Since my last post I have been very busy trying to figure out how Zia Taqueria gets so many corns chips out each hour as I struggle - with at least the possibility of double the production. Rafael is working at Zia,as well as my place and has been able to pick up on some techniques that I can apply to the machine I have with testing coming this week.

The Durango & Silverton Railroad has made an initial order as well as Durango Natural Foods (DNF). I have meetings set up with RGP's, Durango Coffee Co. and Nature's Oasis in the next few weeks, from there I will be focusing on meeting my delivery orders. See everyone at "Taste of Durango" on May 16th.

SKA Tasting Event/Green living Expo

2010-04-08T18:34:00.000-07:00

The underground tasting event held at SKA Brewing that coincided with the seasonal release of their Mexican Logger beer, was a big success and has lead to an opportunity to supply tortilla chips for Zia Taqueria and some of the other Mexican Food restaurants in town. We had on hand for the tasting our "Salted & BBQ" potato chips, some "Sweet Potato Cinnamon Sugar" and a Salted as well as Lime & Sea Salt Tortilla chip. A perfect blend of friends to support me and people who had come for the Mexican Logger release and had heard about the new venture while reading the Durango Herald. Click for Story. For those who have been lucky enough to order recent dishes from Durango Brewing Co. they have been serving "Chip Peddler" chips where, a small amount of sample are available and, pending feedback from the patrons and a go ahead from staff, it will show up on the menu there also.

I have been talking with Tim Turner from Zia Taqueria to see if we can supply them with our chips where they will be served with the meals as well as sold in 8 oz. bags. Speaking of which, I finally have chips for retail purchase at Dietz Market and SKA Brewing, More retailers to come as I line out a consistent production schedule. Ask your favorite lunch place if they will be carrying them and this will help push some sales outlets to inquire about me.

The extra crumbs, smaller chips and seasoning that we are culling from the finished chips can be used as breading for chicken, fish or whatever else you can think of and has been tested by a super secret, yet to be named, informant (also a local shareholder in Steamworks) as well as the head chef at Steamworks with amazing results. Steamworks, you have first dibs on this for "Taste of Durango" if you're interested, otherwise someone else should consider adding this to there menu. More to come, with endless possibilities.

I will be attending the Green Living Expo held at the La Plata County Fairgrounds this coming April 17th and 18th. I will have a small amount of chips available for tasting as well as some bags for sale or to share and consume with family & friends during lunch. My wife Kristine is going to try to make it to the Powerhouse Museum Thursday April 15th night from 5:30 - 7:30 with some samples to try as well.

I am glad that spring has finally arrived where the mountain bike riding at Phil's World is fantastic. I also found a stash of Euphoria Pale Ale, SKA' winter seasonal brew, in Mancos on the way home - it sure is tasting good while I am writing this post.

.

Pre-Tasting Preperation

2010-04-05T14:47:00.000-07:00

I hope to see a lot of you tonight at SKA Brewing for the release of their Mexican Logger Brew where Chip Peddler chips will also be out for tasting. Limited selections, and some for sale.

Mercy Health Foundation had its Soup for the Soul fundraiser for Mercy Hospice Care and we were able to get some chips to the event. It was the first time that the public was going to be trying the product and I was a bit scared to hear any horrible feedback, Karen Midkiff and Joy Hess said that the sweet potato was a crowd favorite, I am currently sourcing them from a co-op in California.

I have made some visits to some possible vendors and restaurants in town and quite a few people have been by the kitchen to see if there are ways we can work together. DSNGRR, Carver Brewing, Mahogany Grill, Durango Brewing Co., SKA Brewing, Durango Natural Foods & Dietz Market have all shown great interest in carrying "Chip Peddler" chips. A small amount of Salted and BBQ chips will be for sale at SKA Brewing tuesday night during the "Chip Tasting" in conjunction with the release of SKA's "Mexican Logger", seasonal brew.

I have been studying how to make potato chips for about a year now and I think that I am starting to understand some of the basics of chipping a potato and now I have been introduced to what it takes to make tortilla chips, wow another endless set of possibilities.

I am still confirming "Sweet Potato" pricing, but I am really close to some numbers with a co-op out of California. They grow Beauregard/Covington, White Sweets, Diane Reds, and Purple Japanese Yams (I want to try these).

Since the last photos you might have seen in the Durango Herald we have picked up a vegetable peeler that takes care of 2 hours of hand peeling time in 5 minutes.

Underground Tasting - April 6th @ SKA

2010-03-25T22:00:00.000-07:00

This coming April 6th from 5PM until 7PM I have arranged with SKA Brewing Co. to release our Salted Potato Chip, BBQ Potato Chip as well as some new ideas that we would like to pair with the seasonal "Mexican Logger" brew which will also be released that night, 6PM - 8PM )also trivia night). It looks like Zia will be serving as well.

Wednesday, I have a meeting with Adam Cline (DSNGRR) who is going to see if we can get our product on the train and Dave Cuntz Executive Chef at the Strater Hotel on to see what we can do for them. Aaron Seitz from Carver brewing will be visiting the kitchen on Thursday to see what we might be able to come up with for them.

I am waiting on some labels to arrive and I just ordered some generic countertop displays which should come in by next Tuesday.

Rafael and I are working at the moment to make the shop run smoother. After our initial run thru with a simulated production run we are looking at each station to see how we can streamline each step of the rough process. Ron Andrews is also getting me some needed hoses to pump oil into the machine more efficiently. We should be ready for production by the end of the week.

Chips to follow...

Crunch Time/ Chips for Sale

2010-03-22T19:23:00.000-07:00

I am ready to go, Rafael Gregorio is helping out part time as I start to get the production line going, we are able to produce quite a few chips when we are at full tilt. The testing has been going well but that is not to say that everything is smooth yet. I have had some feedback about too much salt on some of the BBQ samples and making sure some of the thicker pieces that don't get cooked through are removed has been another challenge. I must say that initial feedback has been positive, but keeping the product consistent batch to batch that will be my main challenge. By the way, please let me know if one of my products is bad in any way, shape or form.

Next I would like to announce the "CHIP PEDDLER - CHIP CLUB" where for $100 plus tax you will receive 24 - 8oz bags of your favorite chips (1 - 8oz bag = 8 servings) plus invitations to "Chip Tasting" events and Chip Club Member Pricing on future purchases of product through the year 2010. Please click on form to open its own page, then print & mail. Support the USP service.

There will be an article in the Durango Herald Wednesday the 24th of March which should generate more interest in what I am doing. I am still trying to determine a date for the underground tasting but I am leaning toward April 6th to coincide with the Mexican Lager release at SKA Brewing Co.

Kitchen Done

2010-03-16T18:14:00.000-07:00

At the moment I have everything in the shop to make get tasting snacks, parsnips, potatoes, sweet potatoes, salts, seasonings and more new surprises to come. Stay tuned for the underground tasting session that will be taking place at SKA Brewing Co. as early as next week. Full public rollout to come later.

I would also like to announce the "Chip Club" membership program that I will have for direct buy options. More details to come later on the blog.

The kitchen is now finished and pending approval by the city inspector and the health department I should be making chips soon. Everything is in working order with certain constraints in the packaging dept. that I have yet to resolve.

The kitchen will be available for lease as a "Cold Prep Kitchen" for catering and other needs. Besides the fryer I don't have an oven at the moment and as you can see from the pictures the prep tables have yet to be purchased, but I will have a Health Dept certified space for people to work out of.

3/4 Kitchen

2010-02-23T05:57:00.000-08:00

I had been waiting to post my next blog until the kitchen was complete, but I think that it still might be a couple weeks away.

There has been a lot of positive feedback on the name & logo and I can't wait to start coming up with some creative marketing angles for the company. I would like to make sure that I maintain these principals;

1) Keep the dollars as local as possible
2) Use fair trade practices
3) Strive to implement environmentally responsible production policies
4) Give back to two wheeled sports.

My first order of potatoes will be arriving this week (except I think it is going to dump by Thursday (the 25th) morning) anticipating that I will have the kitchen ready any time now. Randy from Garrh's has been by to take measurements for the up-blast fan that will be installed on the roof. I hope to have the metalwork done by early next week so the electrician can come to hook up the fryer and the overhead lights by March 8th or so.

I should have chip samples ready by the end of March in various types of delicious flavors that will taste wonderful next to your favorite beverage.

Kitchen - Half Way Done.

2010-01-25T06:19:00.000-08:00

I want to go back a few months and talk about all the great help I got from Joe Keck and the Small Business Development Center up at Fort Lewis College. Joe helped me understand the flow of a spreadsheet and how to understand my cost of goods and how I need to balance that with my margins, inventory, supply and cash. I cannot say enough good things about the help that I received. This leads me to my next topic. Since I have been recording most of my research of becoming a Potato Chip maker and when it came to getting insurance for the business I went to Jim Duresky's Farmers Insurance company. I was asked what type of background I have in this industry or what type of schooling that I had obtained. Being able to document my research and show it to the insurance company I was able to save over $500 dollars off my insurance.

Putting together this kitchen has been no easy task, but I have gotten some great advice from Bill Manning making sure that I have installed extra water bibs and electric outlets. With as much time and energy that I am putting into the 1st phase of the company I still keep thinking about how I will use the space if and when I expand to the next level. Andy Hoff from Black Bear construction has been helping me with most of the construction aspects of the building along with Gene Jones from Roto Rooter helping out with our underground plumbing.

With all the snow in town I have encountered a few minor setback, things could have been worse. The walls will be done this week and the electric will be installed soon. I am currently looking into the proper water heater, which will be electric to hook into solar panels one year, and getting the Health Department to stop by for some more recommendations.

Kitchen Re-Model - Start

2010-01-04T06:32:00.000-08:00

December has been a slow month for progress with the kitchen and the purchasing of equipment for the shop, but as the new year has now started I hope to move forward a little quicker.

I have signed a lease for a place in BODO Park which is located at 286 Sawyer Dr. Unit C just across from Desert Sun Coffee where some of the finest locally roasted brew can be found.

The machine I bought in Florida had a rough ride on the way here and got smashed up a little, so I have brought in Ron Andrews of Andrews Design Works, they also build "King Cage" bicycle water bottle cages, to help me fix the damage that has been done. Before starting I had Jim & Randy from Arrow fire & Safety come by and make sure that the fire suppression device would not discharge on us.

With the schools being off for Christmas Vacation, Colton, Emery, Kris and I have been putting in some time down at the facility getting it ready for the upcoming year. The place is a little rough around the edges but I only have so much $ to put into it for the moment.

In the background I have been working with Jon Bailey to come up with the brand and brand elements. Although the name of the parent company will be Durango Snack Werks, the line of chips will be under the product name "Chip Peddler" for all the various flavors and styles of potato chips that I plan on making (I think I have a line on getting Sweet Potatoes also).

I hope to have my kitchen ready by the end of the month of January, but with this being the 5th already it might be tough.

More to come...

Neil

Implementation

2009-12-03T12:16:00.000-08:00

My trip to Florida has resulted in the purchase of a Potato Chip making machine.

The next phase will involve the construction of a commercial kitchen.

I have been able to locate a space in Bodo Park, Durango as well as the equipment needed to make chips at a rate that will meet the production needs.

I have talked to quite a few restaurants and caterers to see if they feel the product will fit there current offering, quite a few are excited about the idea and want to know when delivery will start.

It has been no easy task to change directions in careers, but I feel strongly that I am going the right direction.

The machine should be delivered in 10 days or so and I will be moving forward with getting a kitchen ready for the company. I am hoping to be able to deliver product early next year.

Initial Research

2009-11-13T08:10:00.000-08:00

During the the last summer I have been researching what it takes to make "Potatoes" and other root vegetables into chips and other snacks. The journey started while attending the Leadership LaPlata classes where I got a full understanding of what it meant for a company to be a true "Economic Driver" for your community. I studied "Ska Brewings" business model and thought to myself, could someone take energy from the sun, use local sunflower oil from Dove Creek, regional potatoes from Alamosa, slice them thin enough and make snacks we can enjoy locally. With this model you would be able to keep or create jobs locally and regionally that would include the farmer all the way through production to the delivery driver who drives a truck powered by the used oil that frys the chips.

The process of telling as many people as I know about the idea has lead me to talking to R&G Potatoes, one of the leading suppliers to Frito/Lay, to having an advisor with Bob Jones of Jones Potato Chip Company out of Ohio. I have been able to weave into the business plan many of the great entrepreneurs and business owners we have in Durango like the ability to have my raw potatoes picked up by Rocky Mountain Chocolate Factory and my finished goods distributed by Durango Soda Company.

I have been to the CSU Research Center in Alamosa and seen some of the unique varieties of chipping potatoes that are ruby reds and deep purples, walked the local fields of La Boca Farms and Synergy Acres as well as contacting a supplier in California that will be able to deliver potatoes year round. I have looked in Dolores, Three Springs and Bodo Park as possible locations for the production facility with the idea of keeping it as close to home as possible.